Stewardship

Gold and Silver Are Skyrocketing

by Brother Carlton 
04/21/16
Free to Share
Author requests article critique

  Message Writer
  Hire Writer

Tweet

 Gold and silver are just getting off the starting blocks to what I call a race to the moon.  They are among some of the better performing assets this year.

Yesterday, the price of gold jumped 1.5%. It’s now up 18% on the year. According to Bloomberg Business, it’s having its best start to a year since 1975.

Silver is doing even better. It spiked 4.4% yesterday. It’s now up 22% on the year and trading at its highest price in over a year.

If you like gold and silver then you should really like the gold and silver stocks too because they give you tremendous leverage to the metals price.and for this reason gold and silver stocks have surged even higher than gold and silver.

Most gold and silver mining companies are leveraged to the price of metals so that a small rise in the price of gold can cause gold stocks to surge into what is known as 5 or 10 baggers, that is, 5x or 10x the original price you purchased the stock at.

Gold’s 1.5% gain yesterday led to a 4.9% gain in GDX, the largest gold stock fund. GDX is now up 70% on the year.

Silver stocks had a great day, too. The iShares MSCI Global Silver Miners ETF (SLVP), which tracks large silver miners, soared 9.6%, its second-best day ever. SLVP is up 89% this year. It’s at its highest level since September 2014.

While Wall Street loves to trash the precious metals and tout their latest and favorite stock it is gold and silver that have preserved wealth and unlike stocks which can go to zero gold and silver will always be sold at some price because of their intrinsic value.

For example in the 1920's one ounce of gold was worth about $20.00 and would buy a man's suit.  Today that same one ounce of gold will still buy a  man's suit and a nice one at that.  In fact it will buy two suits since the price of gold is around $1200 and you can get a nice man's suit for around $600.

Gold and silver is a store of value as well as being durable and transportable they also have intrinsic value, are easily divisible.  Both metals are liquid meaning you can convert them to cash very easily at any coin dealer. 

Here's something to consider.  Don't listen to the talking heads on TV that love to bash gold or silver. Much of the controled media is trying to keep the banks and Wall Street from collapsing.  They are transmission belts of propaganda.

Here are the facts from conservative and in the know investment savvy millionaires.  With fiat or paper money the government can increase the supply by printing more and more dollars thus making each unit less valuable.  You can not do this with gold or silver which means they are less likely to flood the market and become worthless because mining for gold and silver is a slow process.    

It was the great economist Ludwig Von Mise who said: "The government is the only institution who can take a valuable commodity like a piece of paper and make it worthless by applying ink."

That says alot doesn't it?

As an old historian once quipped "Rockefeller didn't put gold in the ground, God did."  

The sad fact today is that the average American own no gold or silver but instead has their wealth in paper money but even that is in low supply.

Most Americans have less than $5,000 saved which is a travesty.  They are being conditioned to spend, spend, spend instead of saving. Instead of getting out of debt most Americans are deep in debt and use and mis-use their credit cards.

At one time the banks use to pay a nice interest rate so that you could live on your savings.  Not anymore.
With low interest rates the banks are not giving you any motivation or incentives for you to save money in their banks so where do you put your money?

My answer is put at least 20% in gold and/or silver.  Personally I think silver will outperform gold in the next 4 years.

I watched silver in 1980 reach almost $50/oz and again in 2011 it hit around $48/oz before falling back to the $13.00 range.  It now looks like we have bottomed and have broken above some resistence at $16.00.  If we can clear the $18.50-$19.00 price then silver could easily hit $25-$35 this year.  

Again the gold and silver mining stocks will do even better because of the principle of leverage.  I won't get into that in this article.  You'll have to study that on your own but take my word for it.  

Here's a SECRET source of multiplying your wealth in the coming years.

Look at some of the following stocks and see where they were in Feb of this year and where they are now.  Take CDE, PAAS, AEM as just a few star performers.  How have your stocks done compared to these?  These stocks have done better, in the last few months, that the Dow has done all year.

Go to www.bigcharts.com and type in the stock symbols CDE, PAAS or AEM and see how much they have appreciated.  These are long term positions for the wise investor during this bull market.  

Okay, I rest my case.

 Are you nervous about the economy and the financial condition of America?  Well, you should be and investors often buy gold and silver when they’re nervous about stocks or the economy.

Keep your eye on gold and silver and put some cash into these two forms of wealth.  They are real money that have been used for over 5,000 years. 

If things get as bad as I think they will then gold could far surpass its old high of $1,920 and silver $48.  

Some are predicting they will double or triple their old highs.  Only time will tell but having some is certainly a wise thing in my opinion.